2024-04-02 10:00:00 ET
Summary
- The iShares S&P/TSX 60 Index ETF has drastically underperformed the SPDR S&P 500 ETF Trust over the last 10 years.
- As the commodity sector comes into focus and the technology sector cools, I expect XIU to close some of that performance gap in the near term.
- Canada's aggressively valued real estate market and the tendency of Canadian investors to invest in international markets also contribute to underperformance.
- For the long-term viability of XIU as an investment, Canada must improve its ability to foster technology, innovation and entrepreneurship. I see early signs that make me optimistic that it can happen.
The aptly named iShares S&P/TSX 60 Index ETF ( XIU:CA ) is the ETF that tracks the TSX 60, the largest index in Canada. While a 13% gain over the last year is nothing to sneeze at, the index badly lags the performance of the SPDR S&P 500 ETF Trust ( SPY )....
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XIU: Canada's Market Lags The United States For Good Reason, But It Won't Last Forever